Wells Fargo Bank, NA v. Gonsalves

44 Misc. 3d 531, 987 N.Y.S.2d 561
CourtNew York Supreme Court
DecidedJune 3, 2014
StatusPublished
Cited by2 cases

This text of 44 Misc. 3d 531 (Wells Fargo Bank, NA v. Gonsalves) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wells Fargo Bank, NA v. Gonsalves, 44 Misc. 3d 531, 987 N.Y.S.2d 561 (N.Y. Super. Ct. 2014).

Opinion

OPINION OF THE COURT

Francesca E. Connolly, J.

By way of background, on May 15, 2012, the plaintiff commenced this action to foreclose on certain real property located at 155 Villa at the Woods, Unit No. D211, Peekskill, NY 10566, by the filing of a summons, complaint, and notice of pendency.

On January 14, 2014, this court granted the plaintiffs motion for an order of reference. After signing that order of reference, the Westchester County Clerk’s office notified the court of the following: On May 16, 2012, the day after the plaintiff commenced the action, an employee of the plaintiffs attorneys, McCabe Weisberg & Conway, P.C., wrote to the Clerk’s office by email stating in pertinent part: “I E-Filed a case yesterday afternoon but it was not yet ready to be filed. I checked this morning and found an Index number already assigned to it. Is it too late to cancel it and get a refund?” Unbeknownst to the Court Clerk’s office, the County Clerk’s office issued the plaintiff a refund and, simultaneously therewith, deleted from its records the summons, complaint, and notice of pendency. Notwithstanding the foregoing, the plaintiff continued to file numerous papers on the New York State Courts Electronic Filing (NYSCEF) system, eventually moving for the order of reference. Notably, the papers filed in support of the motion annexed copies of the complaint and the notice of pendency, even though the County Clerk’s office had deleted these documents from its records and from the NYSCEF document list.1 When this court granted the order of reference on January 14, 2014, it was unaware that the plaintiff had sought and obtained a refund for its index number.

Accordingly, faced with this irregularity, on February 4, 2014, this court issued a sua sponte order staying the action. In the order, the court directed that, unless the plaintiff moves for corrective action within a time certain, the action would be dismissed.

[533]*533In response to that order, the plaintiff now moves pursuant to CPLR 2001 to reinstate the index number upon its payment of the filing fee. The plaintiff argues that it always intended to proceed with the action under this index number, and the refund was obtained in error. Accordingly, the plaintiff requests that the court reinstate “the Index Number which was originally purchased, as well as reinstate the Notice of Pendency” (affirmation in support ¶ 11). The plaintiff agrees to pay the filing fees associated with reinstating the index number and notice of pendency.2

Gonsalves opposes the motion and cross-moves pursuant to CPLR 2004 to vacate his default and allow him to interpose a late answer (or deem the late answer he has already filed to be timely served, nunc pro tunc).3 In seeking to deem his late answer timely, he argues that, if the plaintiff is permitted to correct its mistake with regard to the index number, he should be permitted to answer the complaint. In his affidavit, Gonsalves avers that, at the time service was made at the subject property, he was not living there; rather, he had hired a management company to manage the unit.

In reply/opposition, the plaintiff argues that Gonsalves’s cross motion should be denied since he has failed to establish a reasonable excuse for his default and a meritorious defense.

Discussion

1. The plaintiffs motion is granted in part and denied in part

The plaintiffs motion is granted to the extent of permitting it to restore its index number and its summons and complaint upon paying the applicable filing fees; however, the motion is denied with respect to its request to restore its notice of pendency. CPLR 2001 provides:

“At any stage of an action, including the filing of a summons with notice, summons and complaint or petition to commence an action, the court may permit a mistake, omission, defect or irregularity, including the failure to purchase or acquire an index number or other mistake in the filing process, to be corrected, upon such terms as may be just, or, if a [534]*534substantial right of a party is not prejudiced, the mistake, omission, defect or irregularity shall be disregarded, provided that any applicable fees shall be paid.” (Emphasis added.)

The foregoing italicized language was added to the statute by the state legislature in 2007 (see L 2007, ch 529, § 1), and the legislative history indicates that the purpose of the amendment to the statute was to address “a series of recent decisions by the Court of Appeals, which have held that defects in the commencement of actions or the payment of an index number fee will result in outright dismissal of an action so long as a timely objection is made to such defects” (Senate Introducer’s Mem in Support, Bill Jacket, L 2007, ch 529 at 5, citing Harris v Niagara Falls Bd. of Educ., 6 NY3d 155 [2006], Matter of Gershel v Porr, 89 NY2d 327 [1996], and Matter of Fry v Village of Tarrytown, 89 NY2d 714 [1997]). The amendments were intended to “give the court discretion to correct or ignore mistakes or omissions occurring at the commencement of an action that do not prejudice the opposing party” (Senate Introducer’s Mem in Support, Bill Jacket, L 2007, ch 529 at 5). When considering whether disregarding an error will prejudice the opposing party, the primary concern has been whether corrective action by the court in some way would unfairly extend the statute of limitations (see Grskovic v Holmes, 111 AD3d 234, 240-243 [2d Dept 2013]; see also Senate Introducer’s Mem in Support, Bill Jacket, L 2007, ch 529 at 5 [“It is important to emphasize that this measure would not excuse a complete failure to file within the statute of limitations”]).

Further, in Grskovic v Holmes, the Second Department observed, after carefully interpreting the text of CPLR 2001, that “a ‘correction’ of a mistake appears to be subject to a broader degree of judicial discretion without necessary regard to prejudice, whereas a complete ‘disregarding’ of a mistake must not prejudice an opposing party.” (111 AD3d at 243.)

Here, the relief sought by the plaintiff with respect to its index number and the deletion of its summons and complaint is in the nature of the correction of a mistake and, therefore, the court’s discretion is broad (see id.). The plaintiff in this case did in fact file a summons and complaint and due to an error or miscommunication, a refund was obtained for the filing fee. The court is satisfied that the plaintiff’s error was unintentional. Under these circumstances, the plaintiff should be permitted to correct the error with regard to its summons and complaint and, upon paying the applicable filing fee, the summons and complaint should be restored under the original index number.

[535]*535However, the plaintiff’s request to reinstate the notice of pendency must be denied. A notice of pendency (also known as a lis pendens) is, by its nature, notice to the world of the existence of the action.

“The plaintiff files [the notice of pendency] with the county clerk . .

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Cite This Page — Counsel Stack

Bluebook (online)
44 Misc. 3d 531, 987 N.Y.S.2d 561, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wells-fargo-bank-na-v-gonsalves-nysupct-2014.